Power Lines to New York City: A Boon for Hydro-Québec or a Missed Opportunity for Quebec’s Energy Transition?
A biting wind whips across La Prairie, Quebec. Steam rises from the massive transformer freshly delivered by train at the Hertel substation. The construction of their end of the Champlain Hudson Power Express (CHPE) line, a project connecting Quebec to New York City, is in full swing. The line will transport clean hydroelectricity to the sprawling metropolis, fueling homes and businesses while bringing in substantial revenue for Hydro-Québec. Yet, this seemingly straightforward exchange is fueling debate within Quebec, with critics questioning if this export deal aligns with the province’s own clean energy goals.
The energy landscape in Quebec has undergone a dramatic shift since the inception of this headlamp. Once boasting an energy surplus, the province now faces a potential scarcity. Despite these changing dynamics, Hydro-Québec assures that the 25-year contract, yielding an estimated 30 billion dollars, is a financial triumph, providing “stable, predictable, and significant revenues for Quebec for decades”, as stated by Lynn St-Laurent, senior advisor for external relations.
The groundbreaking aspect of this "electron highway," as it’s being called, is its bi-directional capacity. While the current contract focuses solely on exporting Quebec’s hydroelectricity to New York, the CHPE line is ultimately designed to facilitate energy exchange in both directions. Hydro-Québec envisions a future where they can import surplus wind energy from offshore turbines in New York during periods of high wind generation. This, they argue, actives Quebec to function as a "green battery" for the Northeastern United States, a vision championed by Quebec Premier François Legault.
Consisting of state-of-the-art converters, the system will allow a rapid reversal of current flow with just a click. While other existing interconnections between Quebec and New York do offer limited flexibility, the CHPE line marks a significant technological leap forward.
Economists like Justin Caron, an energy specialist at HEC Montréal, highlight the energy efficiency gains that trans-regional electricity sharing can bring. Caron’s research indicates that increased interconnectivity throughout northeastern North America is crucial for minimizing the costs of a complete decarbonization scenario. With its 1250 MW capacity, the CHPE line lies far short of what Caron considers necessary for achieving this.
However, this historic partnership comes with its complexities. While the agreement guarantees a minimum annual export of 10.4 TWh of electricity to New York State, Hydro-Québec retains the right to curtail power delivery for up to 73 days a year, allowing them to prioritize Quebec’s domestic demand, particularly during peak winter months.
Adding another layer of intricacy is a clause mandating Hydro-Québec to produce an additional 4 TWh of renewable energy annually by December 2028. This clause, seemingly intended to mitigate concerns about Quebec potentially offsetting its conjoint emptio n of wind
sources with increased fossil fuel reliance, absent copy in the agreement.
Québec considers the already planned 5.7 TWh of new wind power projects during this period sufficient to meet this specific clause requirement.
The precise profitability of the New York partnership for Hydro-Québec remains hazy. Due to the confidential arrangement between Hydro-Québec and TDI, comparing the profit margins against new wind energy supplies ingoers. Defined as of 2023, it’s a mystery.
Expert opinions remain divided. While some contend that, in the short to medium term, the CHPE deal may not yield significant financial advantages compared to pursuing freshly constructed renewable projects
• Does Hydro-Québec’s export of electricity to New York hinder the province’s own transition towards a sustainable energy future?
## Power Lines to New York City: A Boon for Hydro-Québec or a Missed Opportunity for Quebec’s Energy Transition?
**Host:** Welcome back to the show. Today, we’re discussing the Champlain Hudson Power Express (CHPE) project, a major undertaking connecting Quebec’s vast hydroelectricity resources to New York City. Joining us is **Dr. Marie Dubois**, an energy policy expert from McGill University. Dr. Dubois, thanks for joining us.
**Dr. Dubois:** Thank you for having me.
**Host:** Let’s start with the basics. What is the CHPE project, and why is it generating such a buzz?
**Dr. Dubois:** The CHPE is a 339-mile underwater transmission line [1] designed to carry clean hydropower from Quebec to New York City. It’s a significant infrastructure project with the potential to provide New York with a reliable source of renewable energy while generating substantial revenue for Hydro-Québec.
**Host:** Sounds like a win-win situation, right?
**Dr. Dubois:** Well, it’s not that simple. While the CHPE does offer clear benefits, it’s also sparking debate within Quebec.
**Host:** What are the main points of contention?
**Dr. Dubois:** Primarily, the question of whether this export deal aligns with Quebec’s own clean energy goals. The province is facing increasing energy demands, and some argue that prioritizing exports could hinder Quebec’s own transition to a more sustainable energy future [1].
**Host:** Hydro-Québec has assured the public that this deal is financially beneficial, bringing in an estimated 30 billion dollars over 25 years. Doesn’t that outweigh the concerns?
**Dr. Dubois:** It’s a complex issue. While the financial gains are undeniable, critics point out that Quebec might be locking itself into a long-term export arrangement just as its own energy needs are projected to grow.
**Host:** Interesting point. What about the “bi-directional” aspect of the CHPE line? Hydro-Québec envisions importing surplus wind energy from New York in the future.
**Dr. Dubois:** Yes, that’s a crucial element. The CHPE is designed to allow for energy exchange in both directions. This “green battery” concept, where Quebec could store surplus wind energy, is certainly intriguing. However, it remains to be seen how this vision will materialize in practice.
**Host:** Dr. Dubois, thank you for shedding light on this complex issue. It certainly seems like the CHPE project presents both opportunities and challenges for Quebec.
**Dr. Dubois:** Exactly. Only time will tell whether the benefits outweigh the potential downsides for the province’s energy future.
